A recent report by the State Bank of Pakistan presents an intriguing yet disconcerting snapshot of the country's IT sector. While IT exports have surged by 24% in the fiscal year 2023-2024, reaching a commendable $3.2 billion from the previous year's $2.59 billion, this growth masks underlying vulnerabilities. The sector recorded an impressive $300 million in exports in June 2024 alone, a 33% increase from the previous year. This spike is largely driven by increased demand for Pakistani IT services in the Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia.
These gains, however, are precariously balanced on the outcomes of bilateral agreements between Pakistan and GCC nations - agreements that have only just begun to show their promised benefits. While these pacts have opened doors for foreign investment in Pakistan's IT companies and startups, they have also cast a spotlight on the glaring deficiencies within our digital infrastructure. The establishment of innovation centres, centres of excellence and university branches are........